From the massive coal deposits of Thar to the gold and copper treasures of Reko Diq, Pakistan possesses unbounded mineral potential as it is among the top five countries having abundant mineral reserves. Despite huge potential, the contribution of mineral sector to Pakistan’s GDP is around 3 % and country’s exports are only about 0.1% of the world’s total. This demonstrates how mineral resources require special attention and sustainable use, thereby ensuring long-term gains for future generations.

The Reko Diq project, one of the world’s greatest undeveloped copper and gold reserves, also is a prime illustration of unclear regulatory frameworks

The Reko Diq project, one of the world’s greatest undeveloped copper and gold reserves, also is a prime illustration of unclear regulatory frameworks. Foreign operators such as Barrick Gold are operating the project with 50% shareholding, conferring poor stakes on the locals and less say in its colossal potential. As a result, enormous earnings flow out of the country, leaving local stakeholders with few benefits.

Pakistan can retain more control over its resources, increase profitability and ensure sustainable management

In an effort to protect the interests of the nation in the long term, renegotiation of agreements with foreign stakeholders is inevitable. Increasing local ownership and providing incentives or infrastructural assistance in exchange for more profit-sharing can save money getting out of the country from such projects. While foreign collaboration is necessary for expertise and investment, the focus should shift towards fostering local capabilities along with foreign investment. Pakistan can retain more control over its resources, increase profitability and ensure sustainable management.

Besides, the country’s mining industry must overcome ineffective administration and a lack of investment in potential areas. For example, in North Waziristan, where Copper Ore reserves total 500 million tonnes, ineffective administration and scarce funding have kept the region from reaching its full potential. But a competitive advantage in the Global Copper market necessitates ongoing efforts to optimise mining processes, improve infrastructure and investment, as well as engage in Research and Development (R&D) to increase productivity.

Pakistan has attracted investment but for the much-needed speed in the development of mineral sector ensuring ease of doing business, transparency, and political stability are the significant credentials

For that Pakistan needs to exploit initiatives like SIFC to promote both domestic and international investment in the mining sector. By simplifying the visa procedures and removing entry barriers, Pakistan has attracted investment but for the much-needed speed in the development of mineral sector ensuring ease of doing business, transparency, and political stability are the significant credentials.

While administrative and R&D issues are vital, technology is also an important part of Pakistan’s mineral security. The antiquated technology that continues to control Pakistan’s mining practices is a significant element impeding the country’s ability to maximize its mineral endowment. The use of old processes results in inefficiency and excessive waste, with quarrying alone losing up to 75% of important resources. This is much greater than the global benchmark of 45%, which suggests that Pakistan is wasting huge amounts of natural wealth while extracting minerals.

For these resources to contribute meaningfully to the economy, the latest, high-efficiency extraction methods are required to be adopted. Automation, artificial intelligence, and precise extraction methods have revolutionized industries across the globe, and it is high time for Pakistan to employ these technologies in its mining procedures. These technologies will not only improve efficiency and reduce waste but also improve the quality of materials that are being collected, thereby making it easy for new domestic and foreign markets to emerge.

The Pakistani mining industry, despite benefiting economic development, has numerous environmental implications

Apart from this, the Pakistani mining industry, despite benefiting economic development, has numerous environmental implications. The uncontrolled mining of Pakistan is riddled with serious environmental threats in the form of pollution, environmental degradation, and disturbance of environmental processes. The present legislation requires the employment of environmental impact assessments such as the Initial Environmental Examination (IEE) and Environmental Impact Assessment (EIA) in the interest of protecting the public against such hazards. For the compliance of the Environmental Protection Act of 1997, the Supreme Court emphasized the necessity of acquiring environmental licensing before initiating small-scale mining activities.

According to Justice Malik, “There is immense potential in the mining industry for the economy of the country; but it cannot be done at the expense of the environment.”

Pakistan needs to restructure its regulatory framework and administrative infrastructure, integrate novel technologies, and adopt eco-friendly practices

While climate change worsens environmental issues, climate-resilient approaches to mining need to be followed to safeguard Pakistan’s ecosystems while seeking economic growth. Several states like China, Chile, Sweden, and Australia can provide valuable lessons in this regard as they are promoting sustainable copper mining through cleaner extraction technologies, water recycling, land restoration, and biodiversity conservation to reduce environmental footprints.

Building on this, Pakistan’s mineral security is contingent on using existing resources and managing them responsibly for long-term development. The nation must shift its approach. Pakistan needs to restructure its regulatory framework and administrative infrastructure, integrate novel technologies, and adopt eco-friendly practices. Adopting these measures, Pakistan will be able to convert its mineral resources from a passive asset to an active catalyst for economic growth, while protecting the resources for future generations.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.